S&P: Recycled Paper on watch

Standard & Poor's said it placed its B corporate credit and other ratings on Recycled Paper Greetings Inc. on CreditWatch with negative implications.

The CreditWatch placement reflects the company's violation of its total leverage, first-lien leverage, interest coverage and fixed-charge covenants on its bank credit agreements, the agency said.

Liquidity is very limited as the company does not have access to its $20 million revolver, and has minimal cash, S&P noted.

Additionally, Recycled Paper has a $5.5 million interest payment due April 30, the agency said.

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